FITUG opposes GPL tariff increases : -calls for restoration of $5.2 billion subsidy cut by the parliamentary opposition

THE Federation of Independent Trade Unions of Guyana (FITUG) has expressed its opposition to the proposed 26.7% increase in tariffs by Guyana Power and Light Inc. (GPL). In a statement issued yesterday FITUG said it opposes the “massive and sudden” 26.7 percent proposed tariff increase being sought by GPL..
According to the statement, FITUG’s affiliates, the Guyana Agricultural and General Workers Union (GAWU), the Guyana Labour Union (GLU), the Clerical and Commercial Workers Union (CCWU) and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) are not persuaded by all the reasons advanced by GPL for such a steep increase.
The release stated that commercial issues and issues of losses through transmission and distribution do not justify such a drastic increase in electricity rates.
“FITUG agonises over what such an increase, if approved, would mean for the cost of production for commercial and manufacturing goods, for the domestic, working-class consumers,” it stated.
Whether sympathisers of government or opposition, FITUG said the increase will result in untold hardships to all consumers.
The organisation particularly noted that the situation in Linden, where government’s subsidies mitigate the real cost of electricity provided for such a community.
“It is, by perception at least, utterly unfair to ask the rest of the nation’s electricity consumers to pay so much more,” it said.
FITUG is calling on the combined parliamentary opposition to support the restoration of the $5.2B which was cut from the $10.2B originally allocated to GPL in this year’s budget.
It stated that the denial of the subsidy, and at the same time disagreeing to the tariff hike, speaks to the undermining of the utility company and callousness to consumers.
The Federation advised that it met, on Tuesday, with President Donald Ramotar and the delegation informed him of its vehement disagreement to the proposed increase and urged the government to do everything to stave off the increases and to pursue with the Amaila Falls Hydroelectric Plant in order to reduce electricity costs.
According to the release, while the president sympathised with FITUG’s call, he explained that the government’s subsidy to the utility body is necessary to contain the electricity rates. President Donald  Ramotar also informed the delegation that the government is actively pursuing the Amaila Falls project and hopes construction could commence in 2014.
He also said that the GPL is actively engaged in a number of projects aimed at reducing its losses and strengthen its managerial and technical capabilities in order to improve efficiencies.

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